Book your summer holiday now to beat rising package holiday prices, expert warns

Package holidays have historically been touted as an affordable travel option, but prices are rising in some of the most popular European destinations. 

Costs have been pushed up by higher demand, increasing energy costs for hotels and rising aviation fuel prices, according to Which? research. 

The British consumer watchdog analysed the costs of over 8,000 European breaks, comparing the prices of week-long package holidays available in January 2024 for an August 2024 departure, with those offered in January 2025 for August 2025.

The results show that seven out of 10 destinations have seen price hikes that are outpacing the UK’s overall rate of inflation (2.5 per cent). 

Package holiday prices hiked in Italy, Portugal and Croatia

The research found that package holiday prices have jumped by an average of 4.2 per cent compared to 2024. 

The most significant rises are in Bulgaria. The Black Sea coast has found fame as a cheaper alternative to Italian, Greek and Croatian shores. 

Though it remains a good-value European destination, its prices are creeping up. 

The destination has seen prices rise 11.5 per cent year on year. The average holiday package cost per person has risen from £1,038 (€1,238) in the summer of 2024 to £1,157 (€1,380).

Italy has also seen considerable price hikes with the average cost of a package holiday rising by 7.4 per cent. That translates as an increase in cost per person from £1,163 (€1,387) to £1,249 (€1,490).

Portugal’s prices have risen by 6.8 per cent, with the per person cost of a package jumping from £1,267 (€1,511) to £1,353 (€1,614), while prices in Cyprus increased by 6.4 per cent, from £1,241 (€1,480) per person to £1,321 (€1,576).

Destinations in Croatia, Spain and Greece have also experienced price hikes since last summer but at rates below 3 per cent on average, in line with inflation.

Holidaymakers can save money in Ibiza and Tenerife

In more wallet-friendly news, those looking for a budget package deal may just need to consider a different destination. 

Some holiday spots have seen a dip in prices since last year. In Ibiza, costs have fallen by 6.4 per cent on average from £1,269 (€1,513) per person to £1,187 (€1,416).

Packages for Spain’s Costa Dorada are 2.9 per cent cheaper on average from £1,074 (€1,281) per person to £1,042 (€1,243), and Tenerife has seen prices drop by around 2 per cent from £1,200 (€1,431) to £1,175 (€1,401).

How to save money on a package holiday

“While inflation has started to ease over the last year, our latest research has shown holiday prices bucking the trend, with a combination of increased demand, alongside rising energy and fuel costs, contributing to higher prices for holidaymakers,” Rory Boland, editor of Which? Travel, told Travel Weekly.

ADVERTISEMENT

“Booking early is almost always your best chance of securing the best rate – so now is the best time to get the cheapest prices on summer holidays.”

“Take the time to shop around, and if you’re holidaying with kids, consider travelling in the last week of summer holidays, as we’ve previously found this can be the cheapest week in the peak season.”